Gold Technical Precious Metals (2012-03-16)

By IBT Staff Reporter On 03/16/12 AT 3:00 AM

Morning Report

The metal returned to settle above 1656.00, where this positive sign suggests that one of the 0-5 harmonic patterns is correct and valid. Stochastic is within overbought areas, which might force the metal to retest areas around 1656.00. Consolidation above 1624.00 suggests that the upside move could extend during the session today, noting that a breach of 1598.00 negates both patterns.

The trading range for today is among the key support at 1590.00 and key resistance now at 1706.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

***New York Candlesticks***

Previous Report

Weekly Report

Support

1656.00

1650.00

1638.00

1629.00

1624.00

Resistance

1662.00

1673.00

1681.00

1688.00

1694.00

Recommendation

Based on the charts and explanations above our opinion is buying gold around 1656.00, targeting 1673.00, 1688.00 and 1694.00 and stop loss with 4-hour closing below 1624.00 might be appropriate.